Examining Churn and Loyalty Using Support Vector Machine

Ali Dehghan, Theodore Trafalis

Abstract

The present study attempts to contribute to the knowledge of how customer loyalty could be assessed, using support vector machine. Additionally, the relationship between customer loyalty rate and churn rate is studied. After literature review and elaborating the concepts of customer loyalty, churn and support vector machine, a comprehensive data analysis on a telecommunication company's customers' dataset, utilizing support vector machine, has been developed. The proposed dataset consists of 1300 customers of a telecommunication company . The results imply that the proposed data analysis tool could be used for recognizing and determining the strategies leading to higher customer loyalty and lower churn.